Sanofi, Denali Enter Collaboration Deal Valued at Up to $1 Billion

   By Donato Paolo Mancini

Sanofi SA (SAN.FR) and Denali Therapeutics Inc. (DNLI) have entered a collaboration agreement valued at up to $1.02 billion to develop molecules to treat neurological and systemic inflammatory diseases, the two companies said Thursday.

Under the terms of the deal Sanofi will make an upfront cash payment of $125 million to Denali, the companies said. The remaining $895 million is for clinical and regulatory milestone payments, a Sanofi spokeswoman said.

The two lead molecules, DNL747 and DNL758, target a signaling protein that regulates inflammation and cell death in tissues throughout the body, the two companies said.

The companies plan on studying DNL747 in Alzheimer's disease, amyotrophic lateral sclerosis (ALS)and multiple sclerosis (MS). DNL758 will be studied in systemic inflammatory diseases like rheumatoid arthritis and psoriasis.

The transaction is expected to close in the coming months, pending regulatory approval.

Write to Donato Paolo Mancini at donatopaolo.mancini@dowjones.com

(END) Dow Jones Newswires

November 01, 2018 02:37 ET (06:37 GMT)

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